EUR/JPY looks for a decisive break above 119, EU referendum eyed

Amid improved risk environment ahead of the much-awaited UK’s vote on the EU membership, the EUR/JPY cross holds near the upper bound of this week’s trading range.

EUR/JPY eyes 119 and beyond

The EUR/JPY pair remains strongly bid around 118.65 levels, moving-off highs posted at 118.79, still up +0.58% on the day. The sentiment remains underpinned on renewed optimism that Bremain will occur after the latest Brexit Opinium polls showed votes favouring the Remain camp.

Looking ahead, the EU referendum begins at 6GMT this Thursday and is likely to have significant impact on the yen markets alongside the pound and euro. The poll results will be published after almost 24 hours, which will set the tone across the fx space for the upcoming weeks.

EUR/JPY Levels to consider  

The pair has an immediate resistance at 119/06 (Jun 22 high) and from there to 119.87 (20-DMA). On the flip side, support is seen at 118.26/118 (5-DMA/ 1h 100-SMA) below which it could extend losses to towards 117.50 (psychological levels).